Eagle Industry Co., Ltd. Business Report FY ended Mar. 2015
Financial Overview |
(in million JPY) |
FY ended March 2015 | FY ended March 2014 | Rate of Change (%) | Factors | |
Sales | 138,150 | 124,709 | 10.8 | -Steady sales at the Automotive & Construction Machinery businesses, and at the Marine Industry business. |
Operating income | 14,493 | 11,403 | 27.1 | - |
Ordinary income |
16,750 | 14,523 | 15.3 | - |
Net income | 9,510 | 7,426 | 28.1 | - |
Automotive and Construction Machinery Industries | ||||
Sales | 85,335 | 77,700 | 9.8 | -Even though sales of construction-machinery products were sluggish because of the slowing economy in China, sales of automotive products remained strong worldwide. |
Outlook for FY ending Mar. 31, 2016 |
(in million of JPY) |
FY ending Mar. 31, 2016 (Forecast) |
FY ended Mar. 31, 2015 (Actual Results) |
Rate of Change (%) |
|
Sales | 145,000 | 138,150 | 5.0 |
Operating income | 15,000 | 14,493 | 3.5 |
Ordinary income | 17,000 | 16,750 | 1.5 |
Net income | 11,000 | 9,510 | 15.7 |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
Mid-term Management Plan
-The New Three-year Mid-term Plan announced in 2014 covers FY2014-2016 (April 2014-March 2017). It calls for developing globally efficient management and new products with long-term potential that make use of proprietary technical expertise. The following are the targeted figures by the final year.
- Sales: JPY 150,000 million
- Operating profit: JPY 15,000 million (profit margin of 10%)
- Sales at Automotive and Construction Equipment: JPY 92,000 million (18% increase over FY2013 that ended March 2014)
Long-term Management Vision
-The Company aim to achieve net sales of JPY 202,000 million by FY ending March 2021.
R&D Expenditure |
(in million JPY) |
FY ended March 2015 | FY ended March 2014 | FY ended March 2013 | |
Overall | 1,496 | 1,163 | 755 |
-Automotive and Construction Machinery | 1,057 | 862 | 474 |
R&D Structure
-The Company's Technical Center is the main function responsible for R&D activities in the Company, collaborating with the technical/engineering, production, and sales functions to develop products in all its business sectors.
-The Company has 85 staff working in R&D, accounting for 1.6% of its total workforce. (As of March 2015)
-August 2014 marked the completion of the new R&D center at the Saitama Factory. The center boasts a comprehensive R&D structure ranging from materials to product design and manufacturing technology.
R&D Activities
Automotive and Construction Machinery
-Mechanical seals for engine coolant circulation pumps:
- Significantly reducing frictional force while at the same time maintain a high level of sealing performance by using its expertise on surface-texture technology.
- Responding to high-heat/high-loads and the need for longer product life by using metal bellows.
-The Company is developing high-speed mechanical seals by using surface-texture technology.
- Achieving a good balance between low torque and high sealing performance of high-revolution shaft-seal parts such as turbocharges.
-The Company completed development; and commenced mass production of a carbon bearing for electric water-pumps, which demonstrates excellent performance in terms of wear and abrasion resistance. The Company is developing carbon bearings that significantly reduce friction.
-Mechatronics Products: The following are currently under development:
- Magnetic control valves using metal bellows.
- Hydrogen gas control valves for use in FCVs
- Products with metal bellows for use in control devices.
-R&D activities are being conducted on sliding materials for all types of seals.
Capital Expenditure |
(in million JPY) |
FY ended March 2015 | FY ended March 2014 | FY ended March 2013 | |
Overall | 11,761 | 8,178 | 8,527 |
-Automotive and Construction Machinery | 6,760 | 4,840 | 6,182 |
Automotive and Construction Machinery
-In fiscal year ended Mar. 31, 2015, the Company made capital investments mainly to increase its production capacity, especially at the following locations.
- EKK Eagle Industry Mexico S.A. de C.V.: JPY 1,221 million
- Eagle Industry France S.A.S.: JPY 1,211 million
- EKK Eagle (Thailand) Co., Ltd.: JPY 377 million
- Eagle Simrax B.V.: JPY 373 million
-FY ending March 2016, capital expenditure is planed to be JPY 13,800 million overall.
Investments Outside Japan
-The Company plans to construct new plant in Hungary. The plant will be established in 2016 to manufacture engine valves.
Planned Capital Investment |
(As of Mar. 31, 2015) |
Facility (Location) |
Location | Equipment to be installed |
Estimated amount of investment (in million JPY) |
Period of the project | |
from | to | ||||
The Company's Okayama Plant |
Okayama Pref., Japan | Equipment to produce mechanical seals | 3,260 | Apr. 2015 |
Mar. 2016 |
Equipment to produce special valves | |||||
Hiroshima Eagle Co., Ltd. | Hiroshima Pref., Japan |
Equipment to produce mechanical seals | 344 | Apr. 2015 |
Mar. 2016 |
Equipment to produce special valves | |||||
Eagle Industry (Wuxi) Co., Ltd. | China | Equipment to produce mechanical seals | 421 | Apr. 2015 |
Mar. 2016 |
Equipment to produce special valves | |||||
NEK Co., Ltd. | Korea | Equipment to produce mechanical seals | 476 | Apr. 2015 |
Mar. 2016 |
EKK Eagle (Thailand) Co., Ltd. | Thailand | Equipment to produce mechanical seals | 315 | Apr. 2015 |
Mar. 2016 |
Equipment to produce special valves | |||||
Eagle Industry France S.A.S. | France | Equipment to produce special valves | 784 | Apr. 2015 |
Mar. 2016 |
Eagle Simrax B.V. | Netherlands | Equipment to produce mechanical seals | 454 | Apr. 2015 |
Mar. 2016 |
Equipment to produce special valves | |||||
Eagle Industry Hungary Kft. | Hungary | Equipment to produce special valves | 418 | Apr. 2015 |
Mar. 2016 |
EKK Eagle Industry Mexico S.A. de C.V. | Mexico | Equipment to produce special valves | 1,946 | Apr. 2015 |
Mar. 2016 |
Data
Mar. 2015 | Mar. 2014 | Mar. 2013 | |
Automotive and Construction Machinery | 2,788 | 2,718 | 2,527 |
General Industrial Machinery | 2,052 | 2,006 | 1,990 |
Marine | 217 | 217 | 232 |
Aerospace and Opt electronics | 230 | 214 | 174 |
Administrative Division | 44 | 47 | 49 |
Total | 5,331 | 5,202 | 4,972 |
Sales by Segment |
(in million JPY) |
FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
Automotive and Construction Machinery | 85,335 | 77,700 | 60,019 |
General Industrial Machinery | 32,344 | 29,668 | 27,865 |
Marine | 12,902 | 11,227 | 10,140 |
Aerospace and Opt electronics | 7,566 | 6,114 | 4,792 |
Adjusted amount | - | - | - |
Total | 138,150 | 124,709 | 102,817 |
Sales by Geographic Area |
(in million JPY) |
FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | ||||
Sales | Ratio | Sales | Ratio | Sales | Ratio | |
Japan | 69,764 | 50.5% | 67,207 | 53.9% | 62,879 | 61.2% |
Others | 68,385 | 49.5% | 57,502 | 46.1% | 39,938 | 38.8% |
Total | 138,150 | 100.0% | 124,709 | 100.0% | 102,817 | 100.0% |
Consolidated |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.) |
FY ended Mar. 31, 2011 |
FY ended Mar. 31, 2012 |
FY ended Mar. 31, 2013 |
FY ended Mar. 31, 2014 |
FY ended Mar. 31, 2015 |
|
Sales (million yen) | 91,920 | 96,237 | 102,817 | 124,709 | 138,150 |
Income from ordinary business activities (million yen) | 9,142 | 7,224 | 8,934 | 14,523 | 16,750 |
Net income (million yen) | 4,871 | 3,013 | 4,501 | 7,426 | 9,150 |
Comprehensive income (million yen) | 1,834 | 2,848 | 10,706 | 14,158 | 14,019 |
Net assets (million yen) | 40,991 | 42,568 | 52,541 | 62,933 | 74,786 |
Total assets (million yen) | 103,439 | 107,375 | 122,658 | 142,531 | 156,443 |
Book value per share (yen) | 735.44 | 722.24 | 950.42 | 1,153.02 | 1,366.47 |
EPS (yen) | 100.26 | 61.94 | 93.73 | 154.09 | 197.00 |
Diluted EPS (yen) | - | - | - | - | - |
Net asset ratio (%) | 34.6 | 34.5 | 37.3 | 39.0 | 42.2 |
ROE (%) | 13.8 | 8.3 | 10.9 | 14.7 | 15.6 |
PER | 8.8 | 13.9 | 9.8 | 10.3 | 12.4 |
Cash flow from operating activity (million yen) | 11,224 | 6,224 | 10,703 | 16,334 | 14,086 |
Cash flow from investment activity (million yen) | (7,312) | (11,404) | (8,675) | (11,659) | (12,652) |
Cash flow from financial activity (million yen) | (1,465) | (323) | (1,498) | (2,159) | (2,044) |
Balance at the term-end of cash and cash equivalents (million yen) | 16,310 | 11,398 | 12,992 | 17,379 | 17,911 |
Number of employees | 4,454 | 4,844 | 4,972 | 5,202 | 5,331 |
Non Consolidated
FY ended Mar. 31, 2011 |
FY ended Mar. 31, 2012 |
FY ended Mar. 31, 2013 |
FY ended Mar. 31, 2014 |
FY ended Mar. 31, 2015 |
|
Sales (million yen) | 58,193 | 60,451 | 73,444 | 87,322 | 96,310 |
Income from ordinary business activities (million yen) | 2,484 | 2,404 | 4,099 | 6,140 | 7,787 |
Net Income (million yen) | 2,188 | 1,768 | 5,464 | 3,641 | 5,083 |
Paid-in Capital (million yen) | 10,490 | 10,490 | 10,490 | 10,490 | 10,490 |
Number of stock outstanding (1000) | 49,757 | 49,757 | 49,757 | 49,757 | 49,757 |
Net assets (million yen) | 30,184 | 30,830 | 35,931 | 39,016 | 42,122 |
Total assets (million yen) | 85,541 | 88,330 | 96,525 | 105,556 | 112,396 |
Book value per share (yen) | 620.33 | 643.45 | 746.29 | 808.86 | 871.85 |
Dividend per share (yen) | 11.00 | 11.00 | 14.00 | 25.00 | 40.00 |
EPS (yen) | 45.05 | 36.35 | 113.78 | 75.56 | 105.30 |
Diluted EPS (yen) | - | - | - | - | - |
Net asset ratio (%) | 35.3 | 34.9 | 37.2 | 37.0 | 37.5 |
ROE (%) | 7.5 | 5.8 | 16.4 | 9.7 | 12.5 |
PER | 19.56 | 23.61 | 8.00 | 21.05 | 23.11 |
Payout ratio (%) | 24.4 | 30.3 | 12.3 | 33.1 | 38.0 |
Number of employees | 716 | 739 | 850 | 913 | 897 |